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Press release from Business Wire

ARIAD Announces Underwriters' Exercise of Over-Allotment Option

Friday, December 16, 2011

ARIAD Announces Underwriters' Exercise of Over-Allotment Option09:20 EST Friday, December 16, 2011 CAMBRIDGE, Mass. (Business Wire) -- ARIAD Pharmaceuticals, Inc. (NASDAQ: ARIA) today announced that the underwriters of its previously announced public offering have exercised in full their option to purchase an additional 3,225,000 shares of ARIAD's common stock at a public offering price of $10.42 per share. As a result, ARIAD will issue a total of 24,725,000 shares of common stock for total gross proceeds of approximately $258 million. The aggregate net proceeds to ARIAD from this offering are expected to be approximately $243 million after deducting underwriting discounts and commissions and estimated offering expenses. ARIAD expects to issue and deliver all 24,725,000 shares on or about December 20, 2011, subject to customary closing conditions. J.P. Morgan Securities LLC, Cowen and Company, LLC and Jefferies & Company, Inc. are acting as joint book-running managers and underwriters for the offering. BMO Capital Markets Corp., Leerink Swann LLC, Oppenheimer & Co. Inc. and Rodman & Renshaw, LLC are acting as co-managers for the offering. A shelf registration statement on Form S-3 relating to the public offering of the shares of common stock described above was filed with the Securities and Exchange Commission (the “SEC”) and is effective. A final prospectus supplement relating to the offering has been filed with the SEC. Copies of the final prospectus supplement and accompanying prospectus may be obtained from the offices of J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Telephone number 866-803-9204), the offices of Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Telephone number 631-274-2806), or the offices of Jefferies & Company, Inc., Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022 (Telephone number 877-547-6340). This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. About ARIAD ARIAD Pharmaceuticals, Inc. is an emerging global oncology company focused on the discovery, development and commercialization of medicines to transform the lives of cancer patients. ARIAD's approach to structure-based drug design has led to three internally discovered, molecularly targeted product candidates for drug-resistant and difficult-to-treat cancers, including certain forms of chronic myeloid leukemia, soft tissue and bone sarcomas and non-small cell lung cancer. Forward-looking StatementsCertain of the statements made in this press release are forward looking, such as those, among others, relating to our expectations regarding the expected closing date of the public offering and the gross proceeds and net proceeds from the offering. Actual results or developments may differ materially from those projected or implied in these forward looking statements. Factors that may cause such a difference include, without limitation, risks and uncertainties related to whether or not we will be able to raise capital through the sale of shares of common stock, market and other conditions, the satisfaction of customary closing conditions related to the public offering and the impact of general economic, industry or political conditions in the United States or internationally. There can be no assurance that we will be able to complete the public offering on the anticipated terms, or at all. You should not place undue reliance on these forward looking statements, which apply only as of the date of this press release. Additional risks and uncertainties relating to the offering, ARIAD and our business can be found under the heading "Risk Factors" in the filings that we periodically make with the SEC and in the preliminary prospectus supplement related to the offering filed with the SEC on the date hereof. In addition, the forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.ARIAD Pharmaceuticals, Inc.For InvestorsMaria E. Cantor, 617-621-2208Maria.cantor@ariad.comorFor MediaLiza Heapes, 617-621-2315Liza.heapes@ariad.com